What Causes A Perfect Storm?
Well that’s the million dollar question, isn’t it?
What I deem a perfect storm is a set of circumstances that occur once, maybe twice in a lifetime that offers unparalleled opportunity to purchase undervalued real estate at unnaturally depressed prices. There was one similar opportunity in the late 1980s, early 1990s when the RTC (Resolution Trust Corporation – a government-run entity used to liquidate primarily foreclosed commercial assets) had one of the biggest fire-sales of commercial real estate in US history. This was a time that fortunes were made in the acquisition of overly distressed real estate assets. At that time, the market collapse was caused by 3 main factors (1) change in US tax laws affecting real estate investors, (2) Overbuilding, (3) The Savings & Loan banking scandal and fraudulent activity of mortgage lenders and appraisers.
So what’s causing the Perfect Storm Today?
(1) Massive residential property speculation in 2003-2006
(2) Too much credit available to purchase and finance real estate which was overused by lenders and uncreditworthy borrowers
(3) The current overall US market decline/recession that is spreading into a global crisis
(4) Current lack of funds for qualified borrowers
(5) Current oversupply of properties for sale
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In today’s real estate market, many prospective homeowners are faced with the tough financing situations that are now all too common. The government does not seem to have any viable solutions and seems to just get us further into the crevasse of recession but allowing big banks to run even further off course. If you find yourself seeking a way out of a life of bank servitude, try building your own green home by using these strategies.
Build a cord wood home
Saving a lot of money by building your own cord wood home is easier than you may think. First, cord wood construction is simply using lengths of firewood (cord wood) embedded into mortar structure. This wood is built into the wall in a perpendicular fashion and creates a wall that is about a foot or so thick, whatever length of wood you cut. (more…)
When an appraiser is calculating the market value of homes that involve Fannie Mae or Freddie Mac mortgages, he is required by law to consider three factors for all comparable home sales:
- Days on Market,
- Inventory Levels, and
- Absorption Rates
You probably can figure out what the first two are, but the third item is unknown to most people. The absorption rate requires some calculations and it can have a major impact on the appraised value of your home. (more…)
Today’s real estate market is driving home values to some of their lowest levels in 20 years. One way that homeowners can combat this problem is to somehow attempt to increase the value of their homes.
Thankfully, there are several inexpensive ways that a homeowner can increase the value of their houses. To demonstrate this point, here are four ways that homeowners can increase the value of their homes inexpensively. (more…)
Adding fire pits to properties can increase the values of these properties in the real estate market. They can make homes look more attractive and more inviting. They need to be displayed as tastefully as possible when houses are being shown to prospective buyers.
Different types of permanent fire pits are available. They range from simple styles that are little more than circles of rocks to very elaborate ones surrounded by seating areas. They can be used as a selling point for houses. It is important to make sure they look their best when the houses are being shown to prospective buyers. They should be in good condition and clean. The area around them should be attractive. (more…)
The housing market was hit the hardest in the current US economic recession. But for buyers looking into investing in a property, there is no better time to buy. Nationally speaking, the real estate market today is at its most affordable in 18 years. According to the Housing Opportunity Index, the housing in the fourth quarter of 2009 was 62.4 percent more affordable than the same time a year earlier.
The best part of the country to invest in real estate is the Midwest, Pittsburgh, PA being on the top of the list. For a housing market in any city of any state to be considered attractive, needs to have three factors: (more…)
